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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Hank Scorpio who wrote (117951)	12/31/2018 4:24:22 PM
From: Qone0	Read Replies (1) \| Respond to of 218601

I never hold overnight, The Tuesday and Thursday options will lose premium overnight. Takes about a $1.00 gap in SPY to overcome this. Mon. Wed. Fri. expire same day. The strike will be out of the money, the strike moves closer to the money if the trade triggers close to the close. I usually buy the strike that is .30 to .50. That is far enough out of the money to have a chance of coming into the money, this is where the 10 baggers come from. Once into the money the option starts ticking with SPY. If you buy a .30 option and SPY comes into the money and then runs 3.00 more, you have yourself a 10 bagger. If you buy at the money you'll never get the big % moves. And out of the money does as good or better % during the day as at the money. Just have to be careful to keep track of the time on expiry days. Puts generally are better % movers for the same move in SPY as premium is dropping with a dropping VIX in a call and increasing in a put as VIX rises. I'll switch to es if VIX gets over 30.